GBP/AUD: the macro gap
On the Macro Currency Strength Meter, the British Pound scores -14 and the Australian Dollar scores +17 — a gap of 32 points in favour of the Australian Dollar. The widest divergence is in interest rates, which favours the Australian Dollar. All else equal that gap is a fundamental tailwind for the Australian Dollar against the British Pound — though markets may already have priced much of it in.
Strength gap
-31.9
Stronger side
AUD
Edge is
Narrowing
Scores
-14 vs +17
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is GBP minus AUD.
| Factor | GBP | AUD | Gap |
|---|---|---|---|
| Interest Rates | -31 | +31 | -61.5 |
| Growth | — | -39 | +38.8 |
| Positioning | -6 | +49 | -55.6 |
| Risk Mood | +8 | +39 | -30.9 |
| Commodities | — | +2 | -2.1 |
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